M O R I TA R E P O R T 2 0 1 3

To Shareholders and Investors
Business Report for the 80th Term
From April 1, 2012 to March 31, 2013

Protecting Human Life and Mother Earth

Securities Identification Code: 6455

Morita Topics
Osaka Head Office moved to Chuo Ward
We successfully relocated our Osaka Head Office in May 2013
to Dosho-machi, Chuo-ku, Osaka.
We had deep roots in the Ikuno Ward where our previous
headquarters was established in 1944, and our previous
location had also served as a manufacturing hub for mainly
producing fire fighting vehicles. We relocated all of our
production facilities to Sanda City, Hyogo prefecture in 2008,
however, since the buildings had become old after nearly 70
years and since we needed to improve productivity. Afterrelocating our production facilities, we also decided to move
our Osaka Head Office.
Our new headquarters is near Osaka’s business center ofMidosuji, strategically located so that we can coordinate betterwith Sanda factory (which is our production facilities) and ourTokyo Head Office (which serves as our sales headquarters).
We intend to leverage our new Osaka Head Office location torealize further strides in earnings growth.
Taking advantage of our new beginning, we as a company lookto further dedicate ourselves to enhancing shareholder value
and grow each of our businesses. We therefore ask for yourcontinued support and guidance in these efforts.

01

M O R I TA R E P O R T 2 0 1 3

Developed fire-extinguishing foam agent
which also works with seawater
Morita this year developed Miracle Foam α+ (PLUS), a new
foam agent that can be loaded onto our Miracle CAFS Car.
Developed in 2007, our CAFS (Compressed Air Foam System)
vehicle remains an innovative fire-fighting system in which a
1% concentration consisting of a special foaming agent andwater is mixed with compressed air. This expands the water’ssurface area to create foam and extinguish fires efficiently. To
date, we have sold about 700 Miracle CAFS Car to municipal
governments.
T h e n e w f o a m a g e n t ’s
biggest characteristic is thatit can be used with both
fresh water and seawater.
Miracle Foam α+ (PLUS)
was developed in response to
feedback from firefighters
who worked during theunprecedented Great East Japan Earthquake. Firefightersbattling fires in the earthquake’s aftermath used seawater when
operating their Miracle CAFS Cars since obtaining fresh waterfrom fire hydrants and rivers was difficult. Unfortunately,
however, they found that our previous foam agent did not
produce enough foam when used with seawater. We thus
worked to develop a foam agent that can create ample foam
when also mixed with seawater. By adjusting the ratio of
surfactants derived from natural ingredients and by engaging
in proprietary pretreatment processes, we successfully createda fire-extinguishing foam agent which—whether mixed withfresh water or seawater—creates
ample foam to fight Class A fires.
T h e n ew M i r a c l e Fo a m α +(PLUS) uses the same water-mix
concentration of 1%, can travel
the same distance from the hose
as water and has exceptional
capability in cooling burning
items and preventing them from
Miracle Foam + (PLUS)
reigniting.
M O R I TA R E P O R T 2 0 1 3

02Miracle Foam α+ (PLUS) newly comes loaded on our Miracle
CAFS Car starting this year, and we have also begun sellingthe foam agent separately.
We see our mission as developing products which can respond to avariety of possible disasters, and intend to continue our productdevelopment efforts as Japan’s top market share holder in firefighting vehicles.

Waste to resource: introducing a sorter
with multiple high-resolution sensors anda cable recycling system
Morita Environmental Tech exhibited its new “VARISORT”
sorter at N-Expo 2013, which was held May 21-24, 2013 at
Tokyo Big Sight. VARISORT is a sorter with multi-sensor
technology and can combine up to three types of high-resolution
sensors to sort waste products—thereby allowing various
resources to be recovered. N-Expo in turn is one of Asia’s
largest exhibitions featuring environmental businesses.

The multi-sensor soating system VARISORT

After being pulverized, most metal scrap is sorted into dust
and valuable metals (e.g., iron, aluminum, copper, stainlesssteel, etc.). Valuable metals are then recycled while dust is
disposed of as waste. Morita Environmental Tech recently
entered into a technical alliance with Schönberg, Germanybased S+S Separation and Sorting Technology GmbH, and thishas resulted in introducing the above sorter equipped withthree different high-resolution sensors (color, near-infrared,
and metal sensors).
03

M O R I TA R E P O R T 2 0 1 3

VARISORT uses the power of each sensor to extract valuable
metals from the dust, and the dust in turn can be recycled byprocessing it into refuse paper and plastic fuel (RPF). For
consumer electronics products, we also think that recycling
companies can use VARISORT to extract high-purity materials
when recycling plastics.
Moreover, Morita Environmental Tech simultaneously exhibiteda cable recycling systems at N-Expo, and this recyclingmachine has attracted attention as an efficient machine to
extract copper from thevarious cables used in
automobiles, consumer
electronics products,
electrical cords, andtelecommunications
cables. The company
plans to continue its
Cable recycling systems
R&D as well as its
solutions approach to marketing as it contributes to Japan’s
ongoing recycling efforts.

M O R I TA R E P O R T 2 0 1 304

Miyata Cycle introduced “SYUNSOKU”—a new kids’ bicycle
In June, Miyata Cycle introduced “SYUNSOKU,” to support
children’s outdoor lifestyle. ITOCHU Corporation is themaster licensee of the bicycle.
Having a diamond-shaped frame made of oval pipes, themodel features both good design and sturdiness. By applying
thicker tire suitable for bumpy roads, SYUNSOKU is a perfectmountain bike for active children. The pedals are larger andwider featuring more contact area with the shoes, slip-resistantpeddles for easy peddling. Furthermore, a child can use
adjusters to change the brake lever grip as he/she grows bigger.
For children just learning to ride a bike, SYUNSOKU (whichmeans “speedster” in Japanese) has a support grip at the rearof the saddle so that parents can help them. The bicycle comeswith the option of a single or double stand.

SYUNSOKU: kids 14
Size: 14 inches
Color: blue/black

Cover
page

05

SYUNSOKU: kids 16
Size: 16 inches
Color: red/black

A drawing by Satoya Ichikawa, a third-grade student (atthe time of submission) from Okazaki, Aichi, who won
the top prize in the 8th Future Fire Truck Idea Contest forelementary school students throughout Japan.

M O R I TA R E P O R T 2 0 1 3

Message from top management
We deeply appreciate your constant support and patronage,
and are happy to report on our operations in releasing our 80thterm earnings.

Business overview
During the consolidated accounting year spanning April 1,
2012-March 31, 2013, Japan’s economy underwent manychanges. Demand related to earthquake recovery shifted intofull swing and the ruling political party changed hands—
thereby resulting in a weaker yen and higher share prices on
expectations of stimulus measures. As a result, signs of a
gradual (albeit slow) recovery started to emerge. Still,
uncertainties remain since European debt problems are
dragging on and since the Chinese economy is slowing.
In this environment, our group engaged in aggressive sales
operations while working to reduce our cost of goods anddevelop new products.
With the Fire Fighting Vehicles Business contributing
especially strongly, consolidated sales grew ¥3,446 million
year on year to ¥67,140 million (+5.4%). Operating profits
increased ¥1,192 million to ¥6,266 million (+23.5%) andordinary profits rose ¥1,173 million to ¥6,429 million(+22.3%). Although we recorded headquarters relocation
expenses of ¥1,330 million and impairment losses of ¥276
million under extraordinary losses, net profits still grew ¥64
million to ¥2,867 million (+2.3%). Sales, operating profits,
ordinary profits, and net profits thus hit record levels for thesecond consecutive term.

M O R I TA R E P O R T 2 0 1 3

06

Business Condition by Segment
Fire Fighting Vehicles BusinessIn the Fire Fighting Vehicles Business, we looked to boost
market share by increasing sales of high-end products. Sales
thus expanded ¥2,042 million year on year to ¥33,460 million(+6.5%), while segment profits rose ¥675 million to ¥3,941
million (+20.7%).
Fire Protection Equipments & Systems Business
The Fire Protection Equipments & Systems Business selectively
accepted sprinkler facility installation orders and demand
expanded for fire extinguishers due to regulatory changes. Sales
thus grew ¥134 million to ¥16,477 million (+0.8%) and segment
profits expanded ¥297 million to ¥1,456 million (+25.6%).
Recycling Machines Business
Sales at the Recycling Machines Business rose ¥1,070 million
to ¥5,402 million (+24.7%) due in part to the delivery of a large
scrap shears machine for rolling stock. Segment profits
expanded ¥50 million to ¥186 million (+37.2%).
Environmental Conservation Vehicles BusinessAt the Environmental Conservation Vehicles Business, sales
increased ¥732 million to ¥9,005 million (+8.9%) due todiligent sales and marketing efforts. Segment profits grew ¥305
million to ¥605 million (+101.6%).

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M O R I TA R E P O R T 2 0 1 3

Bicycles Business
Sales at the Bicycles Business fell ¥533 million to ¥2,794
million (-16.0%) as the market experienced a backlash
following robust earthquake-driven demand during the prioryear. Segment profits thus declined ¥171 million to ¥36
million (-82.3%).

Future Outlook
The business environment is likely to become increasingly
difficult, changing rapidly. While keeping up with the changes,
we at the Morita Group are looking to return to the basics as amanufacturer, namely improving technology, winning customer
satisfaction, and creating strong brands that our clients would
want. In our view, specific challenges include the following:(1) Strengthening earnings at our existing businesses(2) Expanding our earnings overseas(3) Increasing market share by introducing high-end products, and(4) Training and educating our employees.
We look to increase our corporate value by increasing ourability to make faster business decisions and boosting earnings,
and ask our shareholders for their further support and continued
guidance as we strive to meet our business objectives.
June 2013

Masahiro Nakajima
President

M O R I TA R E P O R T 2 0 1 3

08

Financial Highlights (Consolidated)●Net Sales●Ordinary Profit(Millions of yen)

(Millions of yen)
70,00061,73760,00059,74963,694

67,140

7,000

6,429

6,000
5,256

50,0005,000

40,0004,000

30,0003,000

20,0002,000

10,0001,000

02010.32011.32012.3●Net Income

4,614

2010.32011.32012.32013.3●Return on Assets(Millions of yen)

(%)

3,000

2,803

2,867

9
8.2

2,500
2,000

0

2013.3

4,503

2,230

8

2,044

1,500

7.0

7
6.4
6.1

1,000
6
500
0

5
2010.32011.32012.32013.3●Shareholders’ Equity Ratio

2010.32011.32012.32013.3●Interest-Bearing Liabilities(Millions of yen)
20,000(%)
60

15,00050

14,74812,568

48.6
44.9

44.8

11,7089,375

10,000

42.4

40
5,000

30

09

2010.32011.32012.3

M O R I TA R E P O R T 2 0 1 3

2013.302010.32011.32012.32013.3

Consolidated Summary●Consolidated Balance Sheets

Morita Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2012 and 2013
Millions of yen

2012

2013

Assets¥ 40,948¥ 40,404

Property, plant and equipment

29,14828,538Intangible assets

1,613

1,206

Investments and other assets

6,341

7,984

¥ 78,051¥ 78,133

Current liabilities¥ 27,263¥ 26,908

Long-term liabilities

14,571

12,027

Total liabilities

41,83438,935

Common stock

4,746

4,746

Additional paid-in capital

3,742

3,742

Retained earnings

28,85931,557

Current assets

Total assets
Liabilities

Net assets
Shareholders’ equity

Treasury stock, at cost
Total shareholders’ equity(1,040)(1,056)36,30738,98967961

Accumulated other comprehensive income
Unrealized gains on available-for-sale securities
Deferred gains on hedges
Unrealized gains (losses) on revaluation of land

09

(1,066)(1,774)Foreign currency translation adjustments

(351)

(198)

Total accumulated other comprehensive income(1,350)(1,001)

Minority interests in consolidated subsidiaries

1,258

1,209

Total net assets
Total liabilities and net assets

36,21639,197¥ 78,051¥ 78,133(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.

M O R I TA R E P O R T 2 0 1 3

10

●Consolidated Statements of Income

Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2012 and 2013
Millions of yen

2012

2013

¥ 63,694¥ 67,140

Cost of sales
Gross profit

47,911
15,78349,837
17,303

Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred

10,709
5,073
561
1,020
4,614

11,037
6,266
624
2,081
4,808

2,222
(480)
1,741

2,342
(321)
2,020

Minority interests in earnings (losses) of consolidated subsidiaries
Net income

69¥ 2,803(79)¥ 2,867

Net sales

Yen

Per share of common stock
Basic net income
Diluted net income
Cash dividends applicable to the year

2012

2013

¥ 62.85—
16.00¥ 64.31—
16.00(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.

●Consolidated Statements of Cash Flows
Morita Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2012 and 2013

Millions of yen

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2012

2013

¥ 5,510(1,898)(1,314)
(5)
2,293
6,373
¥ 8,667¥ 5,240(1,813)(3,410)64
81
8,667¥ 8,748(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
11

M O R I TA R E P O R T 2 0 1 3

●Consolidated Statement of Changes in Net Assets(in Millions of yen)
Morita Holdings Corporation and Consolidated Subsidiaries
For the Year Ended March 31, 2013
Shareholders’ equity
Treasury
Total
Common Additional
paid-in Retainedstockearnings stock, at shareholders’capitalcostequityBalance at beginning of year

4,746

3,742 28,859 (1,040) 36,307

Amount of change
Cash dividends

(847)

(847)

Net income

2,867

2,867

Acquisition of treasury stock
Disposal of treasury stock0

Reversal of reserve forland revaluation

(17)

(17)

0

0

677

677

Net changes other thanshareholders’ equity
Total changes
Balance at end of year

—
4,746

0

2,697

(16)

2,681

3,742 31,557 (1,056) 38,989

Accumulated other comprehensive income
Minority
Unrealized
Unrealized
Foreign interests in Total
gains on Deferred gains
currency
consolidated
net assets
available- gains on (losses) on
for-sale hedges revaluation translation subsidiaries
securitiesof land adjustments

Balance at beginning of year67

0 (1,066)(351) 1,258 36,216

Amount of change
Cash dividends(847)

Net income

2,867

Acquisition of treasury stock(17)

Disposal of treasury stock0

Reversal of reserve forland revaluation

677

Net changes other thanshareholders’ equity894

8 (707)

152(48)

Total changes

894

8

152

(48) 2,981

Balance at end of year961

9 (1,774)

(707)

299

(198) 1,209 39,197(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
M O R I TA R E P O R T 2 0 1 3

12Company Profile
Overview
Company Name

MORITA HOLDINGS CORPORATION

Inauguration of Business

April 23, 1907

Establishment

July 23, 1932

Capital¥4,746mil

Osaka Head Office

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities of group companies,
and being entrusted with indirect management operations

Group Companies

13

MORITA
CORPORATION

1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan

MORITABOHSAI TECHCORPORATION

Shiba 256 Square Building 8F, 2-5-6 Shiba,
Minato-ku, Tokyo, 105-0014, Japan

MORITAENVIRONMENTALTECHCORPORATION

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan

MORITAECONOSCORPORATION

1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan

MORITATECHNOSCORPORATION

5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi,
Osaka, 544-0003, JapanMIYATA
INDUSTRY
CO., LTD1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa,
253-8588, Japan
Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fire
extinguishers, firefighting equipment and otherfire protection equipment

MIYATACYCLE CO. LTD.

3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Japan
Development, manufacturing and sales of bicycles

Development, manufacturing and sales of ladder trucks, fire
trucks and other types of fire trucks and specialty vehicles

Sales of fire protection equipment mainly fire
extinguishers. Design, construction andmaintenance of fire protection facilities

Design of waste recycling facilities and other waste
disposal facilities. Development, manufacturing and salesof large hydraulic equipment
Development, manufacturing and sales of environmental
conservation vehicles such as sanitation vehicles andgarbage trucks

Aftercare service and maintenance of fire trucks and of
equipment and materials for lifesaving. Development,
manufacturing and sales of electronic applied machineryand information processing machinery

M O R I TA R E P O R T 2 0 1 3

MORITA SOGO SERVICECORPORATIONALUVOCORPORATIONMORITA U.G.
CORPORATIONMORITA ENGINEERINGCORPORATIONHOKKAIDO MORITACORPORATIONKAGOSHIMA MORITA
PUMP CORPORATIONMORITA TOYOCORPORATIONSHANGHAI JINDUN SPECIALVEHICLE EQUIPMENT CO., LTD.
NANJING CHENGUANG MORITAENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD
SICHUAN MORITA FIRE
SAFETY APPLIANCESLIMITED COMPANY
MORITA HOLDRICH (HONG
KONG) COMPANY LIMITED

5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi,
Osaka, 544-8585, Japan
1479-1 Kamikanzo, Iwata-shi, Shizuoka,
438-0115, Japan
Shiba 256 Square Building 8F, 2-5-6
Shiba, Minato-ku, Tokyo, 105-0014, Japan
1-48 Jinmu-cho, Yao-shi, Osaka 5810067, Japan
13-2-17 Naebo-cho, Higashi-ku, Sapporoshi, Hokkaido, 065-0043, Japan
12-32, Matsubara-cho, Kagoshima-shi,
Kagoshima, 892-0833, Japan
1700-2 Konjinzuka, Sanagu-cho, Iga-shi, Mie, 5180001, Japan
No.1515, Lizheng Road, Shuyuan Town, Pudong
New Area, Shanghai, China, 201304
No.188 Tianyuanzhong Road, Jiangning
Economic & Technical Development Zone,
Nanjing, China, 211100
No.8, Xinhua Avenue, Chengdu CrossStraits Technological Industry Park,
Wenjiang District, China, 611130
16/F., The Peninsula Office Tower, 18 Middle
Road, Tsim Sha Tsui, Kowloon, Hong Kong

Executives
President
Director
Director
Director
Director
Full-Time Corporate Auditor
Full-Time Corporate Auditor
Full-Time Corporate Auditor
AuditorMasahiro Nakajima
Yukihiro Maehata
Kenichi Kitamura
Kazuhiro Tsuchiya
Kazumi Kawaguchi
Eiji Asada
Atsushi Sasaki
Hisao Hayakawa
Kazuyoshi Matsumura

Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer

Hiroko Urano
Naohisa Sakamoto
Shinichi Kanaoka
Shinya Murai
M O R I TA R E P O R T 2 0 1 3

14

Shareholder’s Memo
Information about the StockBusiness Year

April 1st to March 31st

Annual General Meeting Juneof Shareholders
Reference
Dates

Annual General Meeting of Shareholders - March 31stYear-end Dividend - March 31st
Interim Dividend - September 30th
Other dates published in advance as necessary

Posted on company website
Method of
Public Notice http://www.morita119.com/kohkoku/index.html
Administrator of the
Shareholders List

Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Stock Transfer Agency Department, Sumitomo
Place ofClerical Office Mitsui Trust Bank, Limited
for the above 4-5-33, Kitahama, Chuo-ku, Osaka-shi(Postal Address)

Stock Transfer Agency Department, Sumitomo
Mitsui Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063(Telephone Inquiries) +81-120-782-031(Internet Website URL)

http://www.smtb.jp/personal/agency/index.html
Stock Listing

Tokyo Stock Exchange, Osaka Securities Exchange[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.)
before the share certificates were computerized, an account (a special account) has
been opened with Sumitomo Mitsui Trust Bank, Limited, the shareholder registration
administrator. For details regarding the special account, notification of addresschange, and so on, please inquire using the contact information listed above.

[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact the firm
where your account was established for notification of address change and so on.
For shareholders who do not have an account at a securities firm, please inquire
using the contact information listed above.
Osaka Head Office 3-6-1 Dosho-machi, Chuo-ku,
Osaka-shi, Osaka, 541-0045,
Tel. +81-6-6208-1907
Tokyo Head Office 3-25-31 Nishishinbashi,
Minato-ku, Tokyo, 105-0003,
Tel. +81-3-5777-5777

http://www.morita119.com